Russia and India managed to establish a procedure for mutual payments in the national currency of the Asian country. Recently, Russian companies have made several transactions in rupees, the first since the local Central Bank’s recommendation to facilitate such transactions. informs Financial Express (FE), citing a source.
“The settlement of foreign trade in rupees has finally begun, and recently several transactions have taken place with the participation of Russian firms. This is the first series of transactions since the Reserve Bank of India (RBI) introduced guidelines in July to help settle international trade in rupees.
There are currently at least 18 Vostro accounts (foreign legal entity accounts held in the name of Vostro, a local financial institution) opened in India to facilitate rupee trade not only with the sanctioned Russia, but also with Sri Lanka and Mauritius. The article concludes that the development of rupee settlements could contribute to the growth of Indian exports to Russia, which fell 16% to $1.6 billion in October of the current fiscal year due to delayed payments.
December 18 RIA Novosti reported The opening of correspondent accounts with Indian credit institutions by major Russian banks, including Sberbank, VTB and Rosbank. Local rupees became the currency of such accounts.